Macroeconomics and the Fallacy of Freedom (David Logsdon, Guest Contributor)

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Macroeconomics and the Fallacy of Freedom

By David Logsdon

The macroeconomic principles which confine our nation are both plentiful and confounding. Supply and demand, closed loop vs. open loop...it's enough to make even the smartest of economists scratch their heads from time to time. The question before our nation now, though, is one which will determine our economic, personal, and political future for years to come...is capitalism successful?

Today, we won't focus on all the principles involved. Instead we will focus on one...in my personal opinion the biggest flaw of capitalism...the assumption of continual growth. Capitalism relies upon continual growth to exist. Their must be continued growth to ensure a capitalistic economy has a constant flow of money and resources. Since no government agency is controlling the sector, supply and demand instead control what transpires...ensuring the age old adage of “the strongest survive”.

The issue lies in the fact that we on the planet Earth do not live in an open loop system...one where resources “appear” as needed with no limit. Unlimited inputs=unlimited abilities and outputs. Anyone with even a basic understanding of biology has to admit the exact opposite is true...we live in a world with very limited resources, resources which continue to dwindle as the world population explodes. It stands to reason, then, that capitalism is an ill fated black sheep in the modern economic world...and you are partially correct if you think so. Capitalism is destined to fail if taken in its pure theoretical form.

Of course, we have not had a true capitalistic economic system in many, many years, if ever (that point has been argued, and will likely be argued, until the Earth ceases to exist). Instead, the government has continued to step in as necessary to maintain a balance and control...in theory ensuring no one company takes advantage of another and that the playing field is “level”. In theory, this should work. In practice, it rarely does. Regulations and bureaucracy have hampered growth in some sectors while allowing others to grow far beyond what should be deemed “safe and normal”.

But even that digresses from the point of today's writing. It is unrealistic and ill fated to assume that everyone has the ability to “grow”...to better themselves. To succeed...to be “all they can be”. In a system with limited resources, which is the system in which we live, there will always be “haves” and there will always be “have nots”. That is the basic reasoning and premise behind social welfare and “safety net” systems: to ensure that even those in the “have nots” are still able to eek out a life which is not in abject poverty.

It is human nature to want better...to want to succeed and move forward in life. To have the American dream. But what exactly is that dream? And what hope do we have of reaching that dream if economic resources continue to dwindle? There are no easy answers. One thing is for sure though: the language which is currently used against the abject poor is both hateful and unreasonable. To assume that everyone can be “middle class or better” is a fallacy brought about by the “haves” to ensure they don't have to “give up” more than what they believe is their “fair share”. They don't want to admit “good luck” and “good circumstance” combined with their hard work to ensure success. It's too hard to admit that hard work alone does not guarantee a good existence...and it opens up too many avenues from which their wealth can be taken away.

Our nation was founded to escape both religious and monetary persecution... a place to escape the upper class and ensure the basic freedoms which we are given at birth by our creator. Though we have stumbled many times over the years, I don't personally believe we have ever been farther from the truth and meaning of freedom. “With great freedom comes great responsibility” seems to hold no reverence today. It is my firm hope that the modern day “wage slavery” promoted by the “1%” will one day be exposed...long before it's too late. America is still the land of freedom and opportunity...but for it to remain that way will require years of work to ensure that all have at least some basic semblance of true freedom.

It's easy to let the elitists of the world ruin years of hard work...please don't buy into the bigotry and propaganda. America can be great again...but not unless all who call this place home have a reasonably successful existence.

Dave Logsdon is an independent consultant from southwest Alabama. College educated, and currently looking to pursue a graduate degree after nearly a decade of work, he writes under a pseudonym to ensure his privacy. He does not maintain an online presence.

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I hope you enjoyed our guest article. Any comments which you have I will pass along to Dave since he does not actively promote an online presence.

SGAF